TITLE 13 INSURANCE
CHAPTER 4 LICENSING OF
INSURANCE PROFESSIONALS
PART 7 CONTINUING EDUCATION REQUIREMENTS
13.4.7.1 ISSUING AGENCY: Office of Superintendent of Insurance (OSI), Producer Licensing Bureau (PLB).
[13.4.7.1 NMAC - Rp, 13.4.7.1 NMAC, 2/27/2018]
13.4.7.2 SCOPE:
A. This rule applies to all licensed adjusters, insurance producers, limited surety agents, bail bond solicitors, property bondsmen, and nonresident insurance producers unless exempted by Subsection B of this section.
B. The continuing education requirements of this rule shall not apply to:
(1) holders of limited licenses issued pursuant to Section 59A-12-18 NMSA 1978;
(2) licensees who have been continuously licensed by the superintendent for 25 years or more, without a lapse of more than 90 days;
(3) persons who maintain a license solely for the purpose of receiving renewal fee residuals and who do not otherwise transact the business of insurance;
(4) agents of fraternal benefit societies licensed pursuant to Section 59A-44-33 NMSA 1978; or
(5) nonresident insurance licensees who are licensed in another state or country that requires completion of continuing education courses.
[13.4.7.2 NMAC - Rp, 13.4.7.2 NMAC, 2/27/2018]
13.4.7.3 STATUTORY AUTHORITY: Sections 59A-2-9, 59A-6-1, 59A-11-10, 59A-11-23, 59A-12-16, 59A-12-26, 59A-13-12, 59A-44-33, 59A-51-4.1 NMSA 1978.
[13.4.7.3 NMAC - Rp, 13.4.7.3 NMAC, 2/27/2018]
13.4.7.4 DURATION: Permanent.
[13.4.7.4 NMAC - Rp, 13.4.7.4 NMAC, 2/27/2018]
13.4.7.5 EFFECTIVE DATE: February 27, 2018, unless a later date is cited at the end of a section.
[13.4.7.5 NMAC - Rp, 13.4.7.5 NMAC, 2/27/2018]
13.4.7.6 OBJECTIVE: The purpose of this rule is to set forth continuing education requirements for persons who are licensed by the superintendent to transact business in this state and for continuing education providers.
[13.4.7.6 NMAC - Rp, 13.4.7.6 NMAC, 2/27/2018]
13.4.7.7 DEFINITIONS: As used in this rule:
A. “adjuster” means a resident or non-resident public adjuster, staff adjuster or independent adjuster as defined in Section 59A-13-2 NMSA 1978;
B. “approved course” means a course of instruction approved by the committee as satisfying the continuing education requirements of this rule or that has been previously approved by another state with which New Mexico has reciprocal privileges and that has been submitted by the provider and approved by the committee;
C. “bail bondsman” has the same definition as in Subsection A of Section 59A-51-2 NMSA 1978;
D. “biennially” means every two years or during the 24 months next preceding expiration of the current license;
E. “committee” means OSI’s continuing education committee;
F. “compliance period” means the time period between the issue date or last renewal date of the license to the expiration date of the license for purposes of satisfying the continuation requirements;
G. “credit hour” means 50 minutes of actual instruction or self-study time in an approved course;
H. “ethics course” means a course that deals with usage and customs among members of the insurance profession, involving moral and professional conduct and fiduciary obligations and duties toward one another, toward clients, toward insureds, and toward insurers and of responsible insurance agency management;
I. “insurance producer” means a person required to be licensed under the laws of the state of New Mexico to sell, solicit or negotiate insurance;
J. “licensee” means an adjuster, insurance producer, limited surety agent, bail bond solicitor, property bondsman or nonresident insurance producer within the scope of this rule;
K. “limited surety agent” has the same definition as in Subsection C of Section 59A-51-2 NMSA 1978;
L. “nonresident licensee” means a person
licensed in this state pursuant to Section 59A-11-23 NMSA 1978;
M. “property bondsman” has the same definition as in Subsection D of Section 59A-51-2 NMSA 1978;
N. “provider” means a person who is
authorized by the superintendent to provide approved continuing education
courses for licensees and report licensee attendance for credit toward
continuing education requirements;
O. “roster” is an official list of licensees who have successfully completed an offering of an approved course;
P. “solicitor” has the same definition as in Subsection E of Section 59A-51-2 NMSA 1978; and
Q. “superintendent” means the superintendent of insurance, the office of superintendent of insurance or employees of the office of superintendent of insurance acting within the scope of the superintendent’s official duties and with the superintendent’s authorization.
[13.4.7.7 NMAC - Rp, 13.4.7.7 NMAC, 2/27/2018]
13.4.7.8 INSURANCE CONTINUING EDUCATION COMMITTEE:
A. The superintendent shall appoint an insurance continuing education committee that shall serve at the superintendent’s pleasure. The committee shall be a volunteer committee and shall not be entitled to per diem or other reimbursement or remuneration.
B. The committee shall approve individual courses of instruction for continuing education credit, notify the superintendent of approved courses as they are approved, make recommendations regarding continuing education courses and perform other tasks assigned by the superintendent.
C. The committee shall not approve any continuing education course that does not provide a method by which a provider can assure that a licensee has completed the course.
[13.4.7.8 NMAC - Rp, 13.4.7.8 NMAC, 2/27/2018]
13.4.7.9 REQUIREMENTS FOR LICENSEES:
A. Hours required biennially.
(1) All licensees must complete a minimum of three hours of credits in ethics during each compliance period. Ethics credit hours may be included toward the total credit hour requirement for each license type.
(2) Title insurance licensees shall complete ten credit hours of approved courses covering title insurance. At least three credit hours must specifically cover the proper handling of escrow funds. These three hours can also be used to satisfy the requirement for three credit hours in ethics.
(3) Limited surety agents, property bondsmen, solicitors and bail bond solicitors shall complete 14 hours of approved courses covering the Bail Bondsmen Licensing Law, Sections 59A-51-1 et seq. NMSA 1978 and related regulations during each two-year compliance period.
(4) All other licensees shall complete 24 credit hours of approved courses covering some or all of the kinds of insurance for which they are licensed during each compliance period. Licensees who transact insurance under multiple lines of authority are only required to satisfy a single 24 hour continuing education requirement for each compliance period.
(5) Adjusters who are licensed prior to July 1, 2017 must satisfy continuing education credits prior to renewal of licenses beginning with the first biennial renewal cycle occurring after April 30, 2018.
(6) Non-resident licensees are not required to complete New Mexico’s continuing education requirements if the home state requires continuing education and the licensee has complied with the continuing education requirements of the home state, pursuant to the provisions of Section 59A-11-23 NMSA 1978. However, if a non-resident licensee fails to complete the required continuing education courses in the home state, the New Mexico nonresident license shall also be cancelled.
B. No carryover. No licensee may carry over credit hours earned in a compliance period to the next compliance period.
C. No duplicate credit. No additional credit will be granted to a licensee for completion of the same approved course more than once in any compliance period.
D. Course completion date. Course credits are applied to licensing requirements based on the date that the course is taken, rather than on the date that the course credit is reported by the provider.
E. Course approval. Licensees shall receive course credit only for courses that have been approved by the committee prior to enrollment in the course.
F. Extensions. Licensees who meet the criteria of illness, medical disability, military deployment or circumstances beyond the control of the licensee may apply for an extension of time to complete their continuing education requirement or a waiver, in whole or in part, of the continuing education requirement.
(1) The superintendent shall establish the duration of the extension when it is granted.
(2) If the circumstances supporting the extension continue beyond the granted extension period, the licensee may reapply for an extension.
(3) The licensee must request the extension prior to the end of the compliance period for which it applies, using the form available on the OSI website.
(4) Licensees called to active military service in a combat theater, may apply for an exemption from or an extension of time for meeting the continuing education requirements or extending their license renewal. The licensee must request the extension or waiver prior to the end of the compliance period, using the form available on the OSI website.
G. Reinstating a discontinued license. A licensee whose license is discontinued shall complete all required continuing education credits before submitting an application for reinstatement. If the license is discontinued for longer than a single biennial compliance period, the licensee must complete 24 hours of continuing education credits in addition to all credits necessary to renew the license. Instead of completing the required continuing education courses, the licensee may choose to retake the qualifying examination.
[13.4.7.9 NMAC - Rp, 13.4.7.9 NMAC, 2/27/2018]
13.4.7.10 COURSE CONTENT:
A. Course length. Individual courses shall be a minimum of one credit hour in length.
B. Ethics. A single continuing education course may include both ethics and other insurance topics meeting the requirements of Subsection C of this section.
C. Insurance subjects.
(1) General instruction time shall be designed to refresh the licensee’s understanding of basic insurance principles and coverages, applicable laws and regulations, and recent and prospective changes to them.
(2) Required hours for specialized training requirements must be completed prior to transacting the type of insurance and may also be counted toward the 24 credit hour general producer licensee requirement.
(a) Producers desiring to transact business relating to stop loss insurance shall complete at least eight credit hours relating specifically to stop loss insurance.
(b) Adjusters and producers desiring to transact business relating to flood insurance shall complete at least four credit hours relating specifically to flood insurance within one year of the effective date of this rule.
(c) Producers shall not transact business relating to long term care until they have completed at least eight hours of continuing education relating specifically to long term care, and shall complete at least four hours of continuing education relating specifically to long term care during each compliance period thereafter. The course must include topics relating to long term care partnership for producers who wish to transact long term care partnership business. Producers who transact long term care insurance as of the effective date of this rule shall have one year following the effective date of this rule to complete the eight-hour initial course requirement.
(3) Required training shall not focus specifically on training that is insurer- or company-product specific and may not include sales or marketing information.
D. Approved learning formats.
(1) A course may utilize any combination of classroom instruction, lectures, seminars, panel discussions, question-and-answer periods, correspondence courses, online web-based courses and recorded presentations, as long as the provider can assure that a licensee has completed the course.
(2) A minimum of three hours of continuing education course hours for each compliance period must be earned through participation in a formal classroom or in another learning format that permits the student to interact with a live instructor. Licensees are responsible for tracking this requirement and are subject to audit by the superintendent.
[13.4.7.10 NMAC - Rp, 13.4.7.10 NMAC, 2/27/2018]
13.4.7.11 PROVIDER AND COURSE REQUIREMENTS:
A. Provider qualifications. Prior to
submitting proposed courses to the committee for approval, the provider must
submit the following information and be approved as a provider:
(1) the name and contact information for
the provider’s primary contact person;
(2) the provider’s physical and mailing
address;
(3) the provider’s website address;
(4) a link that will be provided for
licensees to review course dates, location, and content;
(5) procedures that will be used to
process online enrollment in courses, including payment via credit card; and
(6) experience and qualifications of the
course instructors.
B. Course content. To obtain approval of a course, a
provider shall assure that:
(1) the curriculum offered relates to
insurance subjects, or subjects which relate to the individual licensee’s
transaction of insurance business;
(2) the course has significant
intellectual or practical content and that its primary objective is to increase
the participant’s professional competence as a licensee; and
(3) pursuant to Subsection B of Section
59A-12-26 NMSA 1978, instruction shall be designed to refresh the licensee’s
understanding of:
(a) basic principles and coverages
involved,
(b) applicable insurance laws and
regulations,
(c) proper conduct of the licensee’s
business,
(d) duties and responsibilities of the
licensee, and
(e) to address recent and prospective
changes.
C. Course approval.
(1) The provider’s course application to
the committee shall include, at a minimum, the following information:
(a) a statement identifying the
knowledge, skills, or abilities the licensee is expected to obtain through
completion of the course;
(b) a detailed course content outline
showing the approximate times for major topics;
(c) a detailed description of the course
materials, including a course content word count, that demonstrates that the
course supports the number of credit hours requested;
(d) the method of evaluation by which the
provider measures how effectively the course meets its objectives and provides
for student input;
(e) the total number of course hours
requested for approval, including the method the applicant is using to determine
the number of course hours and the number of hours included in the total number
of course hours requested for approval that are ethics topics;
(f) the course application fee as
specified in Section 59A-6-1 NMSA 1978; and
(g) for applicants determining self-study
course hours by using the average of approved times in other states, a list of
all course approved times and the states in which the course is approved;
(2) Prior approval. A provider must submit each course for review
and receive approval of the course prior to making that course available for
enrollment by licensees. If the
committee determines that the course content is incomplete or inadequate, the
provider will be notified and required to supplement or modify the course before
receiving approval.
(3) Renewals. The original course application fee covers the
period until the initial expiration of the course. Courses must be resubmitted for renewal, along
with the renewal fee specified in Section 59A-6-1 NMSA 1978. Courses will not automatically be re-approved
by the committee.
(4) Electronic course submission. Beginning July 1, 2017 any provider wishing to
have a course approved by the committee, must submit each course for approval
electronically. Instructions for electronic
submission of courses may be found on the OSI website. Providers should allow up to 60 days for the
committee to approve a new course.
(5) Course expiration. All
continuing education courses already approved by the committee at the time of
the adoption of the final version of this regulation by the superintendent,
will expire on March 31, 2018. All courses approved by the committee thereafter
will expire two years after the date the course is approved.
(6) Voluntary cancellation. Providers shall notify the superintendent when
a course is discontinued or no longer active and when there is a change to the
provider’s information of record.
(7) Non-voluntary course cancellation.
Approved courses shall be cancelled and
the content updated, as necessary, to reflect changes in the law or
regulations. Failure of the provider to
update courses in a timely manner may result in cancelation of the course by
the superintendent.
D. Statement of approved courses. Providers of approved courses shall include
the following written statement in the course materials for each approved
course: “This course has been approved by the Insurance Continuing Education Committee
as New Mexico Insurance Continuing Education Course Number (insert number) for (insert
number) hours of credit.”
E. Instructors. A provider of an approved course shall assure
that instructors for all courses are qualified by practical or academic
experience to teach the subject to be covered. For purposes of this rule, practical or
academic experience shall include, but is not limited to, actual experience
related to the kind of insurance which is the subject of the course,
undergraduate or graduate educational training, or professional insurance
industry designations such as the Chartered
Property Casualty Underwriter (CPCU), Chartered
Life Underwriter (CLU), and Fellow of
the Life Management Institute
(FLMI) designations.
F. Enrollment. Providers shall make available a current list
of scheduled courses including course content, applicable credits, course
dates, instructor information and course location as appropriate. Providers shall collect course fees at the
time of registration.
G. Minimum classroom requirements.
(1) Courses must comply with the approved
learning formats listed in Subsection D of 13.4.7.10 NMAC.
(2) A disinterested third party
attendant, an instructor, or a disinterested third party using visual
observation technology must visually monitor attendance either inside or at all
exits of the course presentation area at all times during the course
presentation.
(3) An instructor must be involved in
each classroom presentation of the course, but in circumstances involving
remote presentations, all students and the instructor do not need to be in the
same location. Students may attend remotely via the internet or other real-time
format. While presenting recorded or
text materials, the instructor making the live course presentation does not
have to be the same instructor included on the recorded presentation or who
prepared the text materials.
(4) Question and answer discussion
periods must be provided by either an instructor making a live presentation of
the course to licensees in the same room, or via real-time live audio or
audio-visual connection which shall allow for student inquiries and responses
with the presenting instructor, or by an instructor who is present for the
entire remote, recorded, or computer-based course presentation with the
students in the same room.
(5) The course pace shall be set by the
instructor and does not allow for independent completion of the course by
students.
(6) Providers may not include time spent
by students on the final examination and pre-tests in determining course credit
hours.
H. Course completion. A provider shall assure that each licensee
completes the course either by:
(1) monitoring the course to witness
attendance and participation; or
(2) requiring submission of a test or
other written work evidencing understanding of the course material.
I. Reciprocal courses. In order for a licensee to receive credit for
a reciprocal course, the reciprocal course must be approved in the provider’s home
state and have been submitted by the provider in its entirety to the committee
for prior approval. The committee may
choose to deny approval of any course hours that are related to the home
state’s laws or regulations or may deny any material, based on the NAIC’s
guidance.
J. Submission of roster. Within ten business days after the completion
of the course of instruction by a licensee, the provider must electronically
submit an attendance roster to the superintendent. Instructions for electronic submittal may be
found on the OSI website.
K. Records. A
provider shall maintain records of attendance and course completion for a
minimum of three years and make such records available to the superintendent or
the committee at any time upon request.
L. Audits. The
OSI staff may conduct audits of any course or provider without prior notice to
the provider. OSI staff or a designee
may attend courses without identifying themselves as employees or
representatives of OSI. If continuing
education records are audited or reviewed and the validity or completeness of
the records are questioned, the provider shall have 30 days from the date of
notice to correct discrepancies or submit new documentation.
[13.4.7.11 NMAC - Rp, 13.4.7.11 NMAC, 2/27/2018]
13.4.7.12 REPORTING REQUIREMENTS:
A. Reporting by providers. Continuing education providers are required
to report completion of continuing education courses to the superintendent. However, it is the responsibility of the
individual resident licensee to ensure that the superintendent’s records
reflect the completion of the required number of continuing education courses
on or before the continuing education due date. The licensee must correct any discrepancies in
the record through the continuing education provider:
B. Transition and reporting after July 1, 2017.
(1) All continuing
education courses must be completed and reported prior to renewal of the
license. Licensees who fail to complete
the required continuing education courses will not be permitted to renew the
license, which will result in immediate termination of the license, pursuant to
Section 59A-11-10 NMSA 1978.
(2) For individual licensees who were
issued or who renewed a one-year agent, broker, or solicitor license prior to
July 1, 2017, the license must be renewed for a biennial insurance producer or
bail bondsmen’s license by April 30, 2018. Prior to that renewal, the individual licensee
must have completed 15 hours of continuing education courses, including at
least one hour in ethics, as was required at the time the license was issued or
renewed.
(3) For all biennial licenses issued
after July 1, 2017, the licensee shall renew on the last day of the second birth
month following issue of the license, such that the initial compliance period
shall be no less than thirteen months and no more than twenty-four months in
length. Prior to renewal, licensees
shall complete the required number of continuing education courses, as set
forth in Subsection A of 13.4.7.9 NMAC. The compliance period for completion of
continuing education courses is the period between issue of the license and
renewal on or before the last day of the licensees second birth month following
issue.
(4) Thereafter, insurance producer
licenses must be renewed biennially on or before the last day of the licensee’s
birth month. Required continuing
education courses must be completed and reported during the compliance period,
which is the twenty-four-month period immediately preceding renewal of the license.
In order to allow time for the provider to report course attendance prior to
expiration of the license, students should plan accordingly in order to avoid
payment of penalties.
C. Fees. A
licensee shall submit all continuing education fees prescribed by Subsection E
of Section 59A-12-26 NMSA 1978 to the provider. The provider will then submit the hourly
course fee electronically to the superintendent on behalf of the licensee. Registration fees are nonrefundable for
licensees who fail to attend or fail to successfully complete a course. Instructions for electronic submittal of fees
may be found on each provider’s website and on the OSI website.
D. Records.
(1) The licensee is responsible for
confirming that all continuing education credits have been correctly recorded
by the provider. The licensee may print
a copy of the entire educational transcript for reference purposes. Instructions for reviewing and printing the
transcript may be found on the OSI website.
(2) It is recommended that all licensees
maintain copies of certificates of completion of approved courses and verified
statements for a period of three years.
(3) Individual continuing education
credit information can be reviewed by the licensee, by the public or by the
superintendent. Instructions for viewing
continuing education information may be found on the OSI website.
(4) The superintendent shall be notified
electronically of any noncompliance with the continuing education requirements
by licensees.
[13.4.7.12 NMAC - Rp, 13.4.7.12 NMAC, 2/27/2018]
13.4.7.13 AUDITING PROCEDURES:
A. All continuing education records submitted or maintained pursuant to this rule are subject to audit by the superintendent.
B. If the superintendent finds a licensee or provider has failed to timely report continuing education credits through the online system, the superintendent may impose a penalty.
C. A provider who fails to submit the roster to the superintendent within ten business days may be subject to removal from the list of approved continuing education providers in the state. Instructions for submitting the roster shall be provided to approved course providers.
[13.4.7.13 NMAC - Rp, 13.4.7.14 NMAC, 2/27/2018]
13.4.4.14 [RESERVED]
13.4.4.15 [RESERVED]
HISTORY OF 13.4.7 NMAC:
Pre-NMAC history. The material in this rule was previously filed with the State Records Center as:
SCC 85-2, In Re to Article II: Rules Regarding Continuing Education Requirements, on April 17, 1985;
SCC-85-11, Insurance Department Regulation 12 - Insurance Agents, Brokers and Solicitors, on October 10, 1985;
SCC-91-3-IN, Continuing Education Requirements of Insurance Agents, Brokers, and Solicitors, on January 31, 1992.
NMAC history.
Recompiled as 13 NMAC 4.7, Continuing Education Requirements, effective 7/1/1997.
13.4.7 NMAC, Continuing Education Requirements, effective 5/1/2002.
13.4.7 NMAC, Continuing Education Requirements, effective 5/1/2002 was Repealed and Replaced by 13.4.7 NMAC, effective 2/27/2018.
History of repealed material.
13 NMAC 4.7, Continuing Education Requirements, Repealed 5/1/2002
13.4.7 NMAC Continuing Education Requirements, filed 5/1/2002 – Repealed effective 2/27/2018.